Edtech company, Veranda Learning Solutions has received approval for raising ₹300 crore through a mix of preferential issue of equity shares and convertible warrants. Of the total, promoters will infuse ₹61.40 crore into the company by subscribing to convertible warrants.
The preferential offer and convertible warrants will have an issue price of ₹307 per equity share.
Under convertible warrants, each warrant is convertible into 1 equity share and the conversion can be exercised at any time within a period of 18 months from the date of allotment.
As per the regulatory filing, 25% of the total consideration for Convertible warrants will be payable at the time of application.
Kalpathi S. Suresh, Chairman and Executive Director, Veranda Learning Solutions, said, “We are pleased with the response to the private placement, and the success of the fundraise places Veranda in a unique position with the necessary war chest to fuel the next leg of growth.”
Suresh added, “At Veranda, our objective is to provide the highest quality education possible at an affordable price. To that end, we are building an eco-system to strengthen our offerings through a judicious mix of high-quality content propelled by cutting edge technology which we believe will take Veranda to greater heights.”
The ₹300 crore fundraising plan is now subject to the approval of shareholders at the ensuing EGM on October 6, 2022.
Earlier, on May 27, the company secured approvals from the shareholders to raise debt in the form of NCDs/ Bonds and other instruments up to ₹1,000 crore. This debt and equity fundraise together would be used to fuel organic growth through acquisitions.
On BSE, Veranda shares closed at ₹350 apiece down by 3.53%. The company’s market cap is around ₹1,950.75 crore.
Veranda Learning Solutions is a public listed edtech company that offers a bouquet of training programs for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes in trending technologies.
The company aims at offering a robust learning platform riding on a network of strong mentors, educationists, and tech-experts.